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The AI research lab Mirendil has signed a multi-year deal worth more than $100 million to use Google’s cloud infrastructure. Mirendil will use this computing power to build and run its self-improving AI models.

This win is a small but helpful sign for Google Cloud as it competes with Microsoft and Amazon to be the primary home for the next wave of AI startups. While the dollar amount is modest for a company of Alphabet's size, winning these high-growth customers is key to justifying the billions the company is spending on new data centers.

Shopify noted that AI-powered search is currently acting as a bridge to its sellers rather than a replacement for traditional Google searches. Some analysts have worried that AI tools which answer questions directly might stop people from clicking through to websites, which would hurt Google's ad business. For now, this suggests that AI search can coexist with the current web ecosystem. If users continue to use these tools to find and buy products, it lessens the immediate risk that AI will destroy the search traffic that Google relies on for its profits.

A UK court has ruled that a lawsuit representing thousands of advertisers can move forward against Google. The case claims that Google used its control over mobile apps and search to shut out competition and charge higher prices for ads, seeking about 6.7 billion dollars in damages.

This is part of a growing list of legal challenges to Google's advertising business. While these cases often take years to resolve, this ruling means the company cannot simply have the matter dismissed and will have to defend its business practices in court. It adds to the long-term risk that regulators or courts could eventually force changes to how Google makes money from ads.

Jeff Dean, a foundational figure in Google's history and its chief scientist, is leaving the company after nearly three decades. His departure comes as Google reorganizes its various AI divisions to move faster in a more competitive market.

Losing a pioneer like Dean is a notable blow to the company's research bench. While Google still has a massive pool of talent, the exit of such a high-profile leader to start a rival firm highlights the ongoing struggle to keep top experts from leaving for smaller, more nimble AI startups.

Source: CNBC

Alphabet is reportedly looking to raise up to 25 billion dollars by selling bonds, which are essentially IOUs that companies issue to investors to borrow money. This move comes shortly after the company told the market it expects to spend heavily on things like data centers and chips to keep up in the artificial intelligence race.

While Alphabet has plenty of cash on hand, borrowing now allows it to fund these expensive projects without draining its own reserves. It is a sign that the company is committed to its high-spending plan even after that forecast caused some concern among those who worry about how much cash the AI push is eating up.

Source: Reuters